The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued draft regulations for captive and renewable energy generating projects in the state.
These regulations come into effect from April 1, 2019 and will remain in force up to March 31, 2024.
The objective of these regulations is to promote generation of power from renewable sources, facilitate connectivity of renewable power projects with the grid and ensure sale of power to any person.
The proposed regulations will apply to all generating stations based on captive generation, renewable sources of generation and co-generation existing in the state before April 1, 2019.
The regulations are also applicable to small hydro projects, biomass power, non-fossil fuel-based power, co-generation projects, solar photovoltaic projects, and wind-based power projects. However, these will take effect only if the projects fulfill the specified eligibility criteria.
The UPERC has also decided on the sharing of carbon credit where generating projects or companies have adopted clean development mechanism (CDM).
The project developer will retain 100 per cent of gross proceeds on account of CDM during the first year of commercial operation of the project. During the second year of commercial operation, the share of power procurer will be 10 per cent and it will increase by 10 per cent every year until it reaches 50 per cent. Upon touching the 50 per cent mark, the proceeds will be shared in equal proportions by generating company and the procurer.
According to the UPERC, the eligibility of renewable energy-based power projects — solar photovoltaic, wind power, and biomass — must be approved by the UP government.
On sale of power, the new regulations state that all existing renewable energy-based power projects which have their PPA approved by the commission should be allowed to sell power to distribution licensee in whose area the project is located.
Renewable energy-based generating power project would also have the right to ‘open accesses’ for transmitting power from its project to destinations of its use by using transmission or distribution or associated facilities.
The project seeking ‘open access’ within or outside the state through the grid will be under regulations specified by the power regulator. In case power generated from a renewable energy project is supplied to a consumer, then the consumer will have to pay charges as per provisions mentioned in UPERC open access regulations.